Business
Business, 08.10.2020 01:01, heidibode

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $0.75 coming 3 years from today. The dividend should grow rapidly - at a rate of 70% per year - during Years 4 and 5. After Year 5, the company should grow at a constant rate of 6% per year. If the required return on the stock is 13%, what is the value of the stock today (assume the market is in equilibrium with the required return equal to the expected return)

answer
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 13:00, stricklandjoseph12
Does a pipe fitter need to go to college
Answers: 1
image
Business, 21.06.2019 21:10, BABA3724
Auniversity spent $1.8 million to install solar panels atop a parking garage. these panels will have a capacity of 400 kilowatts (kw) and have a life expectancy of 20 years. suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kwh), and that the marginal cost of electricity production using the solar panels is zero. hint: it may be easier to think of the present value of operating the solar panels for 1 hour per year first. approximately how many hours per year will the solar panels need to operate to enable this project to break even? a. a.3,696.48 b.14,785.92 c.9,241.20 if the solar panels can operate only for 8,317 hours a year at maximum, the project (would/would not)break even?
Answers: 1
image
Business, 22.06.2019 13:40, allytrujillo20oy0dib
Randall's, inc. has 20,000 shares of stock outstanding with a par value of $1.00 per share. the market value is $12 per share. the balance sheet shows $42,000 in the capital in excess of par account, $20,000 in the common stock account, and $50,500 in the retained earnings account. the firm just announced a 5 percent (small) stock dividend. what will the balance in the retained earnings account be after the dividend?
Answers: 1
image
Business, 22.06.2019 15:40, kaitlynmorgan43
The cost of direct labor used in production is recorded as a? a. credit to work-in-process inventory account. b. credit to wages payable. c. credit to manufacturing overhead account. d. credit to wages expense.
Answers: 2
Do you know the correct answer?
Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain...

Questions in other subjects:

Konu
Mathematics, 11.09.2020 06:01
Konu
Mathematics, 11.09.2020 06:01
Konu
Mathematics, 11.09.2020 06:01
Konu
Mathematics, 11.09.2020 06:01
Konu
Mathematics, 11.09.2020 06:01
Konu
Mathematics, 11.09.2020 06:01
Konu
Mathematics, 11.09.2020 06:01
Konu
Mathematics, 11.09.2020 06:01
Konu
Health, 11.09.2020 06:01
Konu
Geography, 11.09.2020 06:01